By:  Martinez Fischer                                             H.B. No. 3284



A BILL TO BE ENTITLED

AN ACT

relating to permissible investments by the Teacher Retirement 
System of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 825.301, Government Code, is amended by 
amending Subsection (d) and adding Subsection (f) to read as 
follows:
	(d)  Except as provided by Subsection (f), the [The] board of 
trustees may invest assets of the retirement system in obligations 
issued, assumed, or guaranteed by the Inter-American Development 
Bank, the International Bank for Reconstruction and Development 
(the World Bank), the African Development Bank, the Asian 
Development Bank, and the International Finance Corporation.
	(f)  The board of trustees may not invest assets of the 
retirement system in any security of a corporation or other entity 
whose headquarters is not in the United States.
	SECTION 2.  The Teacher Retirement System of Texas shall 
divest any security held in violation of Section 825.301(f), 
Government Code, as added by this Act, not later than January 1, 
2004.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.